company background image
PFS

Provident Financial Services NYSE:PFS Stock Report

Last Price

US$21.96

Market Cap

US$1.7b

7D

0.7%

1Y

-12.4%

Updated

19 May, 2022

Data

Company Financials +
PFS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends6/6

PFS Stock Overview

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States.

Provident Financial Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Provident Financial Services
Historical stock prices
Current Share PriceUS$21.96
52 Week HighUS$26.20
52 Week LowUS$20.86
Beta0.90
1 Month Change-3.26%
3 Month Change-7.58%
1 Year Change-12.37%
3 Year Change-8.69%
5 Year Change-8.50%
Change since IPO41.68%

Recent News & Updates

May 03
Provident Financial Services' (NYSE:PFS) Dividend Will Be US$0.24

Provident Financial Services' (NYSE:PFS) Dividend Will Be US$0.24

Provident Financial Services, Inc.'s ( NYSE:PFS ) investors are due to receive a payment of US$0.24 per share on 27th...

Shareholder Returns

PFSUS MortgageUS Market
7D0.7%4.8%0.1%
1Y-12.4%-30.4%-12.7%

Return vs Industry: PFS exceeded the US Mortgage industry which returned -31.1% over the past year.

Return vs Market: PFS matched the US Market which returned -11.5% over the past year.

Price Volatility

Is PFS's price volatile compared to industry and market?
PFS volatility
PFS Average Weekly Movement3.1%
Mortgage Industry Average Movement4.0%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: PFS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PFS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18391,139Tony Labozzettahttps://www.provident.bank

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. The company’s deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, marine loans, personal loans and unsecured lines of credit, and auto and recreational vehicle loans.

Provident Financial Services Fundamentals Summary

How do Provident Financial Services's earnings and revenue compare to its market cap?
PFS fundamental statistics
Market CapUS$1.67b
Earnings (TTM)US$163.32m
Revenue (TTM)US$468.21m

10.1x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFS income statement (TTM)
RevenueUS$468.21m
Cost of RevenueUS$0
Gross ProfitUS$468.21m
Other ExpensesUS$304.89m
EarningsUS$163.32m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.18
Gross Margin100.00%
Net Profit Margin34.88%
Debt/Equity Ratio29.0%

How did PFS perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is Provident Financial Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PFS ($21.96) is trading below our estimate of fair value ($50.16)

Significantly Below Fair Value: PFS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PFS is good value based on its PE Ratio (10.1x) compared to the US Mortgage industry average (12.2x).

PE vs Market: PFS is good value based on its PE Ratio (10.1x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: PFS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: PFS's PB Ratio (1x) is in line with the US Mortgage industry average.


Future Growth

How is Provident Financial Services forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFS's forecast earnings growth (4.3% per year) is above the savings rate (1.9%).

Earnings vs Market: PFS's earnings (4.3% per year) are forecast to grow slower than the US market (12.4% per year).

High Growth Earnings: PFS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PFS's revenue (6.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: PFS's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFS's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Provident Financial Services performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFS has high quality earnings.

Growing Profit Margin: PFS's current net profit margins (34.9%) are higher than last year (32%).


Past Earnings Growth Analysis

Earnings Trend: PFS's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: PFS's earnings growth over the past year (25.1%) exceeds its 5-year average (11% per year).

Earnings vs Industry: PFS earnings growth over the past year (25.1%) exceeded the Mortgage industry 7.1%.


Return on Equity

High ROE: PFS's Return on Equity (10.1%) is considered low.


Financial Health

How is Provident Financial Services's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: PFS's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: PFS has a sufficient allowance for bad loans (172%).

Low Risk Liabilities: 95% of PFS's liabilities are made up of primarily low risk sources of funding.

Loan Level: PFS has an appropriate level of Loans to Assets ratio (70%).

Low Risk Deposits: PFS's Loans to Deposits ratio (84%) is appropriate.

Level of Bad Loans: PFS has an appropriate level of bad loans (0.5%).


Dividend

What is Provident Financial Services's current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PFS's dividend (4.37%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PFS's dividend (4.37%) is in the top 25% of dividend payers in the US market (4.07%)


Stability and Growth of Payments

Stable Dividend: PFS's dividends per share have been stable in the past 10 years.

Growing Dividend: PFS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.9%), PFS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFS's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Tony Labozzetta (57 yo)

1.75yrs

Tenure

US$2,006,353

Compensation

Mr. Anthony J. Labozzetta, also known as Tony, has been the Chief Executive Officer at Provident Financial Services, Inc. and Provident Bank since January 1, 2022. Mr. Labozzetta has been President and Dir...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD2.01M) is below average for companies of similar size in the US market ($USD5.41M).

Compensation vs Earnings: Tony's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PFS's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: PFS's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PFS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Provident Financial Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Provident Financial Services, Inc.
  • Ticker: PFS
  • Exchange: NYSE
  • Founded: 1839
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$1.668b
  • Shares outstanding: 74.75m
  • Website: https://www.provident.bank

Number of Employees


Location

  • Provident Financial Services, Inc.
  • 239 Washington Street
  • Jersey City
  • New Jersey
  • 7302
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.